Inpex secures first Abadi LNG supply deals in Indonesia

Inpex has signed the first sales and purchase agreements for the Abadi LNG project in Indonesia, providing the commercial foundation needed to advance the long-planned development toward production.

A spokesman for the Japanese energy major confirmed the signing of the agreements to LNG Prime on Thursday. While the company has not yet named the buyers or specified the volumes involved, these contracts represent the first formal commitments for the project’s liquefied natural gas output.

The move follows a period of rapid expansion for Inpex in the region. The company recently took stakes in BP-operated blocks in Indonesia and exercised its right to acquire Jera’s stake in the Ichthys LNG project, tightening its grip on Pacific basin gas supply.

Why it matters

For LNG carrier owners and charterers, these sales and purchase agreements are the first concrete signal that Abadi is moving from a stalled concept to a source of future tonnage demand. Long-term supply contracts are the prerequisite for project financing and the eventual ordering of specialized vessels to service the trade. Without these deals, the project could not move toward a final investment decision.

The development solidifies Inpex’s strategy of building a dominant position in Indonesian gas. By pairing these supply deals with its recent acquisitions of stakes in BP’s Indonesian blocks, Inpex is securing the upstream reserves necessary to feed its export ambitions. This concentration of assets suggests Inpex will have significant control over cargo routing and chartering requirements in the Southeast Asian corridor.

This news offers a clearer outlook for regional trade lanes. Cargoes from Abadi will likely serve the North Asian market, creating predictable, long-haul employment for the next generation of LNG carriers. The project adds a new layer of supply security for Japanese and regional buyers who are increasingly looking for alternatives to Atlantic basin volumes.

What to watch

The next milestone is the announcement of the remaining buyers and the timeline for a final investment decision, which will dictate when the first construction contracts and vessel charters hit the market.

Source: LNG Prime